By: Buckingham S.B. No. 1834

(In the Senate - Filed March 9, 2017; March 23, 2017, read first time and referred to Committee on Transportation; May 1, 2017, reported adversely, with favorable Committee Substitute by the following vote: Yeas 9, Nays 0; May 1, 2017, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 1834 By: Hall

A BILL TO BE ENTITLED

AN ACT

relating to the allocation of money associated with delays of transportation projects.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 222, Transportation Code, is amended by adding Section 222.007 to read as follows:

Sec. 222.007. ALLOCATION OF MONEY FROM TRANSPORTATION PROJECT DELAYS. (a) The department shall establish a system to track:

(1) fees for delays in transportation projects collected by the department from contractors hired by the department; and

(2) liquidated damages retained by the department associated with delayed transportation project contracts.

(b) The system must allow the department to correlate the fees and liquidated damages with:

(1) the project that was the subject of the fees or damages; and

(2) each department district in which the project that was the subject of the fees or damages is located.

(c) Each year, the department shall:

(1) for each department district, determine the amount of money described by Subsection (a) collected or retained in the previous year that is attributable to projects located in the district; and

(2) in addition to other amounts, allocate to each department district an amount of money equal to the amount determined for the district under Subdivision (1) to be used for transportation projects located in that district.

(d) If a transportation project that was the subject of fees or liquidated damages is located in more than one department district, the department may reasonably allocate the penalty revenue from that project between the districts in which the project is located.

SECTION 2. This Act takes effect September 1, 2017.

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